FINANCIAL ACCT-CONNECT
8th Edition
ISBN: 9781266627903
Author: Wild
Publisher: INTER MCG
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Chapter 7, Problem 1PSA
Sales on account and credit card sales C1
Mayfair Co. allows select customers to make purchases on credit. Its other customers can use either of two credit cards: Zisa or Barclay. Zisa deducts a 3% service charge for sales on its credit card and transfers funds to the bank account of Mayfair immediately upon receiving the credit card sales data. Barclay deducts a 2% service charge and transfers the funds to Mayfair within to 8 business days. Mayfair batches the Zisa and the Barclay credit card sales data daily to the card companies. Mayfair completes the following transactions in June.
June 4 Sold $650 of merchandise (that had cost $400) on credit to Natara Morris.
The $429 balance in McKee’s account stemmed from a credit sale in October of last year.
Required
Prepare
Check June 17, Dr. Cash $9,996
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On March 4, Micro Sales makes $12,30o in sales on bank credit cards which charge a 1% service charge and deposits the funds into Micro
Sales bank accounts at the end of the business day.
Journalize the sales and recognition of expense, assuming cash deposited should be reduced by the service charge. If an amount box does
not require an entry, leave it blank or enter "0".
Мaг. 4
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II
Credit Card Sales
Jamie’s Fabrics accepts cash, personal checks, and two credit cards when customers buy merchandise. With the Great American Bank Card, Jamie’s Fabrics receives an immediate deposit in its checking account when credit card sales slips are deposited at the bank. The bank charges a three percent fee. With the United Merchants Card, Jamie’s Fabrics mails the credit card sales slips to United Merchants’ regional processing center each day. United Merchants accumulates these slips for two days and then mails a check to Jamie’s Fabrics, after deducting a three percent fee. Prepare journal entries to record the following:
Round to the nearest dollar.
a.
Sales for March 15 were as follows:
Cash and checks
$950
Great American Bank Card (Deposited at the end of the day)
1,200
United Merchants Card (Mailed at the end of the day)
700
$2,850
b.
Received a check for $1,900 from United Merchants on March 20.
a.
General Journal
Date
Description…
Credit Card Sales
Prepare journal entries for the following credit card sales transactions (the
company uses the perpetual inventory system).
1. Sold $20,000 of merchandise, that cost $15,000, on MasterCard credit cards.
The net cash receipts from sales are immediately deposited in the seller's
bank account. MasterCard charges a 5% fee.
2. Sold $5,000 of merchandise, that cost $3,000, on an assortment of credit
cards. Net cash receipts are received 5 days later, and a 4% fee is charged.
1
Chapter 7 Solutions
FINANCIAL ACCT-CONNECT
Ch. 7 - Prob. 1DQCh. 7 - Prob. 2DQCh. 7 - Prob. 3DQCh. 7 - Prob. 4DQCh. 7 - Prob. 5DQCh. 7 - Prob. 6DQCh. 7 - Prob. 7DQCh. 7 - Prob. 8DQCh. 7 - Prob. 9DQCh. 7 - Prob. 10DQ
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